Mark Niblock, Chief Internal Auditor, introduced the report that summarised the work of the Internal Audit Service for the period 1 January to 28 February 2021. The report identified the significant impact of the Covid-19 pandemic on scheduled audit work and included an analysis of planned work for the remainder of 2020/21.

The report identified to Members some of the impacts of the pandemic on the normal work of the team including the increased demands outside of the norm to address additional risks presented and the impact of this on routine planned work. The report focused on the following:

·  The ongoing impact of Covid19 on the Internal Audit Plan 20/21

·  Internal Audit Activity for the Jan – Feb 21 reporting period

·  Planned Internal Audit work for the remainder of the year

·  Any item of note arising from audit work undertaken the require action.

Members were advised of the significant impact of the Pandemic with many services across the Council unable to continue to deliver normally ad many activities suspended. Members then heard how consequently, and as reported previously many internal audits have had to be suspended with the team deliberately refocussing its activity towards supporting the corporate response to the pandemic, utilising its considerable expertise in governance, controls and risk.

The Chief Internal Auditor reminded Members that the revised Internal Audit Plan was endorsed by the Audit and Risk Management Committee in November 2020 and included targeted audit work aimed at evaluating the effectiveness of controls in operation. Members heard how each audit would culminate in a detailed report for senior management and would identify any areas requiring attention/action and outcomes including progress updates be reported to this Committee.

Of particular interest, Members heard how a piece of work had been undertaken to appraise controls over the operation of payment to the Wirral Growth Company and findings are currently being collated. Members were advised that this audit report is currently being drafted and contains a number of actions to improve systems in operation in the following areas: evidence trails for approvals; access to payment records and reconciliation of balance of partner costs.

Members then heard how there had also been some work undertaken with Merseyside Pension Fund in order to analyse and identify the impact of covid in relation to risk management, VAT compliance and Benefits. Members then heard how work on cyber security is now coming to a conclusion with the overall conclusion that there are some good controls in place but arrangements would be regularly reviewed particularly with reference to the new working landscape.

Members of the Committee were informed that there are currently no outstanding items of note/ action that require escalation by this Committee

In response to a question by a Member the Committee heard how there were seven recommendations that had come from an extended follow up audit of the Treasury Management system. The review identified that of the original seven recommendations, four had been fully implemented and three were still outstanding which had resulted in moderate organisational risk. Members heard how progress with implementing the outstanding recommendations had been delayed due to the impact of Covid 19 on the Treasury Management function but assurances had been obtained that action will be taken and a new target date has been agreed. Members were advised that a follow – up audit will be scheduled within the Audit Plan 2021/22.

In response to a further question, the Chief Internal Auditor advised that in relation to the Audit work that had recently been completed to evaluate and appraise controls in operation over the Wirral Growth Company Payment systems, Members would be informed of progress at the meeting for the Audit and Risk Management Committee in June 2021.

Resolved – That the report be noted.